U.S. Energy Corp. Announces Closing of $5.77 Million Underwritten Public Offering of Common Stock

Rhea-AI Summary

U.S. Energy Corp. (Nasdaq: USEG) announced the closing of its underwritten public offering of 1,131,600 shares of common stock at a price of $5.10 per share, generating gross proceeds of $5,771,160. The offering included the full exercise of an over-allotment option for 147,600 shares. Kingswood Capital Markets acted as the sole bookrunner. Shares were offered under a previously declared shelf registration statement filed with the SEC. The company focuses on acquiring and developing oil and gas properties in the U.S.

Positive

• Raised $5,771,160 in gross proceeds through stock offering, enhancing liquidity.
• Focus on acquiring mature, low decline oil and gas assets allows for sustainable capital returns.

Negative

• Potential dilution of existing shareholder equity due to the new share offering.

HOUSTON, Feb. 17, 2021 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (Nasdaq: USEG) (the "Company"), today announced the closing of an underwritten public offering of 1,131,600 shares of common stock at a public offering price of $5.10 per share, which included the full exercise of the underwriter's over-allotment option for 147,600 shares of common stock, for gross proceeds to the Company of $5,771,160 before deducting underwriting discounts and other offering expenses.

Kingswood Capital Markets, division of Benchmark Investments, Inc., acted as sole bookrunner for the offering.

The shares of common stock were offered by the Company pursuant to a "shelf" registration statement on Form S-3 (File No. 333-248906) previously filed with the Securities and Exchange Commission (the "SEC") on September 18, 2020 and declared effective by the SEC on September 25, 2020. A prospectus supplement and accompanying prospectus relating to the shares of common stock being offered were filed with the SEC.  The Company also filed a Form 8-K in connection with the underwriting agreement and the pricing of the offering. Electronic copies of the prospectus supplement and accompanying prospectus may be obtained on the SEC's website at http://www.sec.gov or by contacting Kingswood Capital Markets, Attention: Syndicate Department, 17 Battery Place, Suite 625, New York, NY 10004, by telephone at (212) 404-7002, or by email at syndicate@kingswoodcm.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About U.S. Energy Corp.

U.S. Energy is an independent energy company focused on the acquisition and development of oil and gas producing properties in the United States. Our business is currently focused on targeting mature, low decline assets with existing infrastructure, which we believe allows us to maximize our return on capital in a cost effective and sustainable manner. More information about U.S. Energy Corp. can be found at www.usnrg.com.

Forward-Looking Statements

Certain statements in this press release constitute "forward-looking statements" within the meaning of, and within the safe harbor provided by the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company's filings with the SEC, not limited to Risk Factors relating to its business contained therein. Thus, actual results could be materially different. Particular uncertainties and risks include the use of proceeds of the offering and market and other conditions. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

FAQ

What was the amount raised in U.S. Energy Corp.'s recent stock offering?

U.S. Energy Corp. raised $5,771,160 through the underwritten public offering.

How many shares were offered by U.S. Energy Corp.?

The company offered 1,131,600 shares of common stock.

What was the public offering price for U.S. Energy Corp.'s shares?

The public offering price was $5.10 per share.

Who acted as the bookrunner for the U.S. Energy Corp. offering?

Kingswood Capital Markets acted as the sole bookrunner for the offering.

What is the purpose of the stock offering by U.S. Energy Corp.?

The proceeds from the offering will enhance liquidity and support the company's focus on oil and gas asset development.